In a message dated 98-09-09 04:04:05 EDT, you write: << I have never been totally sure of the proper procedure for marking up the parts I use in the repair of a clients piano. Is there an industry standard for how much we mark an item up? Does one mark up just the item and not the postage and insurance or include it all as a business expense and mark up the total? I sometimes feel guilty about making a profit on parts and feel that profit on labour is morally correct. Maybe I'm a lousy businessman but this aspect I was never taught. Sincerely John Pengelly >> John: You are a business man. You are in business to make money. One way you make money is by selling your time. The other way to make money is by selling products. In our profession, the products consist mainly of parts we use in the piano, hammers, strings, keytops etc. It takes time to order these parts, then unpack them, then put them in the car to take to the customer, or if we do shop work, to take them from the shelve to the work bench. We have to pay for shelve space while storing these products, we pay insurance on them, etc. etc. I realize all of the things I just mentioned are small, almost insignificant amounts of time or extra costs, but when you add them all up over a year, there is a substantial amount of money and time involved. When you are in business, remember one very important thing. PROFIT IS NOT A DIRTY WORD. You are entitled to it. In fact, if you don't make it, you can't be in business. And it is not unlawful, legally and morrally, to make AS MUCH PROFIT AS YOU CAN. (it's only illegal not to pay taxes on it). There is no standard rule, but in my business classes I recommend you double the price you pay for an item. This covers all of the overhead I mentioned, and adds a little extra in your pocket. Have a profitable day Willem Blees RPT St. Louis
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